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Please Advise what to do?

Ankit Madhogarhia (Pursuing Final) (531 Points)

09 January 2011

Hi,

My friend want to file the return for two assesment year & want to apply for the bank loan.he has a tailor shop & rental income from house property.Is it posible for me to file his return under section 44AF and file the return or else i need to prepare the Profit & Loss A/c and all.As Sec 44AF deals only with retailer .Wholesaler and all.Can i declare my friend business also in that.if not please advise what should i do?

Regards,

Ankit Kumar

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3 Replies

(Guest)

i dont think so tht he can b a retailer ...n u cant include in tht,

let the experts comment...........

Devendra (Chartered Accountant) (4775 Points)
Replied 09 January 2011

Dear Ankit,

1) You can prepare a Profit & Loss A/c and Balance Sheet and show PGBP (ie. Income from Business / Profession) and Rental Income. Yes you will have to quote the name and style of business used to carry on by your friend.

2) Section 44AF is applicable only to retailers having gross turnover less than 40 lacs.

3) It is advisable to file the Income Tax Return by showing Business Income and Rental Income.

Regards,

Devendra Kulkarni

Ankit Madhogarhia (Pursuing Final) (531 Points)
Replied 09 January 2011

Hi,

Thanks for the advice ,but can i show as other from other sources & file the return.i mean to say i will declare rental income & i will show income from clothiing & file the return.if i do the same will they be any problem in the future.

Regards,

Ankit Kumar